Millennial Buyers Have Arrived

April 20, 2017

After many years of experts speculating that Millennials weren’t all that interested in buying a home, they have become the largest group of homebuyers in the country. In January 2017, Millennials were responsible for 45% of all home purchase months, according to Ellie Mae.

Millennials may be ready to become homeowners, but they don’t enter the market without plenty of struggles. Their path to owning a home isn’t easy. Some of the main struggles include:

• Millennials are mainly first-time buyers competing against repeat home buyers with more leverage.
• Prices have gone up due to a shortage of home, especially starter homes falling within the budgets of first-time buyers. According to Zillow, 3% fewer homes were on the market in February 2017 and home values were up about 7% compared to a year ago.
• Bidding wars are making it harder to get an offer accepted. Many properties are receiving multiple offers above list price, especially on the lower end of the market.

Related: Why Should Getting a Pre-Approval be Your First Step in Buying Real Estate?

Due to these struggles, Millennials may consider raising their budget, which could be dangerous. You don’t want to end up in a home you cannot afford. Patience during the home-buying process is paramount. First-time buyers need to stick to their pre-determined budget. Do your homework, figure out your budget and be first in line for the home of your dreams.